Geological Survey of
Western AustraliaGrowing optimism in base metals
Dr Tim Griffin*Executive Director
Geological Survey of Western Australia
Dr P. B. Abeysinghe (Abey)Senior Geologist
2
Western Australia
Production and exploration growth in Cu, Pb, Zn and Ni due to the buoyant market conditions
Nickel particularly is booming with a doubling of annual exploration expenditure in 2004/05
New mines opening and enthusiasm for new and old projects across WA (Magellan Pb, Jaguar Zn, Telfer Au Cu, Ravensthorpe Ni)
Large area, diverse geological environments and mineralization models for base metals
4
Cu-Pb-ZnProduction history WA
0
50,000
100,000
150,000
200,000
250,000
300,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
tonn
es
Cu productionPb productionZn production
Lennard Shelf mines close
Magellan
Telfer Au Cu
5
Cu-Pb-ZnProduction 2004 or 05
Copper (Cu)Telfer, Newcrest Mining Ltd (Au Cu) 43,173 t Cu 2005
Nifty, Aditya Birla Group 15,660 t Cu 2004
Whim Creek, Straits Resources Ltd 4,517 t Cu 2005(quarters 3 and 4 2005)
Golden Grove (see below) 21,222 t Cu 2005By-product from Ni sulphide mining Kambalda district, Cosmos, Emily Ann, Radio Hill, Sally Malay
Lead (Pb)Magellan, Ivernia (Pb) 16,600 t Pb 2005
(excluding quarter 4)Golden Grove (see below) 6,393 t Pb 2005
Zinc (ZN)Golden Grove, Oxiana Ltd (Zn Cu Pb) 63,606 t Zn 2005
(21,222 t Cu; 6,393 t Pb; 24,693 oz Au; 1,829,406 oz Ag)
6
Cu-Pb-ZnResources 2005
Copper (Cu)Telfer, Newcrest Mining Ltd (Au Cu)
Openpit: Measured 150 Mt at 1.3 g/t Au, 0.15% Cu; Indicated 200 Mt at 1.6 g/t Au, 0.13% Cu, and Inferred 94 Mt at 1.1 g/t Au, 0.12% Cu; Underground: Indicated 48 Mt at 2.9 g/t Au, 0.54% Cu and Inferred 11 Mt at 2.4 g/t Au and 0.44% Cu – Produce 640 tonnes of copper in concentrate over 20 years
Nifty, Aditya Birla GroupMeasured and Indicated resource of the primary and leachable ore is 41 Mt at 2.49% Cu
Whim Creek, Straits Resources LtdMeasured 7.3 Mt at 1% Cu; Indicated 7.1 Mt at 0.8% Cu, and Inferred 1.3 Mt at 0.5% Cu
Golden Grove (see below)By-product from Ni sulphide mining Kambalda district, Cosmos, Emily Ann, Radio Hill,
Sally MalayLead (Pb)
Magellan, Ivernia (Pb) Measured and Indicated 18.6 Mt at 5.9% Pb; Inferred 13 Mt at 4.3% Pb
Zinc (Zn)Golden Grove, Oxiana Ltd (Zn Cu Au)
Reserves and resources 6.8 Mt at 14.9% Zn, 15.69 Mt at 2% Cu and 11.34 Mt at 1.95 g/t Au
7
Cu-Pb-Zn Under development or feasibility study
Copper (Cu)West Whundo (Cu, Zn, Ag)
Fox Resources LtdBoddington (Au, Cu)
Newmont Australia Ltd, Anglo Gold LtdPanorama - Sulphur Springs (Cu)
CBH Resources LtdPhillips River (Au, Cu)
Tectonic Resources NLSpinifex Ridge (Mo, Cu)
Moly Mines Ltd and Kallenia Mines Pty Ltd
Zinc (Zn)Jaguar (Zn Cu Ag)
Jabiru Metals Ltd Lennard Shelf – Pillara
Teck Cominco Ltd (Zn Pb)
8
Cu-Pb-ZnExploration successes
Copper (Cu)Maroochydore (Cu)
50:50 by Aditya Birla Group and Murchison United NLSpinifex Ridge (Mo, Cu)
Moly Mines Ltd and Kallenia Mines Pty LtdMt Angelo, Koongie Park (Cu)
Platquest Resources Pty LtdBabel (Ni, Cu)
BHPB (potential resource of 1Mt Ni, 1Mt Cu)
Lead (Pb)Abra (Pb, Cu, Ba, Fe, Au, Ag)
Abra Mining Ltd
Zinc (Zn)Admiral Bay (Zn, Pb, Ag)
Kagara Zinc LtdTeutonic Bore (Zn, Cu)
Jabiru Metals Ltd
Exploration expenditure $9.5M 2004/05
Top ten copper, lead, and zinc projects in Western Australia
0 500 1000 1500 2000
Cotained Cu (kt)
Nifty
Telfer
Boddington
Maroochydore
Golden Grove
Spinifex Ridge
Whim Creek
Panorama
Mt Angelo
Koongie Park
0 400 800 1200
Contained Zn (kt)
Golden Grove
Panorama
Lennard Shelf
Koongie Park
Lamboo
Teutonic Bore
Sorby Hills
Lennons Find
Freddie Well
Trilogy
Copper Lead Zinc
0 500 1000 1500 2000
Contained Pb (kt)
Magellan
Sorby Hills
Trilogy
Abra
Koongie Park
Lennard Shelf
Napier Range
Lennons Find
Northampton
Salt Creek
10
Cu-Pb-ZnMineralization styles
Archean VMS deposits e.g. Golden Grove and Jaguar in the Yilgarn Craton
Mississippi Valley Type sediment-(carbonate) hostedCanning Basin (e.g. Admiral Bay)Lennard Shelf (e.g. Pillara)
Vein and hydrothermal depositse.g. Telfer
Orthomagmatic mafic and ultramafic depositse.g. Kambalda
Deposits associated with porphyry systemse.g. Mt Angelo
Deposits in regolith, Nickel laterite depositse.g. Siberia
13
NiProduction history W A
0
50
100
150
200
250
300
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Con
tain
ed N
i (kt
)
Sulfide+Laterite oreSulfide oreLaterite ore
with projected production from Ravensthorpe
2005 - partially estimated2006 and 2007 - estimated
14
NiRecent Production, New Mines
Kambalda-Kalgoorlie regionNickel Sulfide:
Miitel, Wannaway, and Redross, Mincor Resources NL (Ni Cu)Carnilya Hill, View Resources Ltd (NI Cu)Silver Swan, LionOre Mining International Ltd (Ni)Beta Hunt, Consolidated Minerals Ltd (Ni Cu )Redross and Mariners, Mincor Resources NL (Ni)Blair, Australian Mines Ltd (Ni, Cu)Zone 29, View Resources Ltd (Ni, Cu)Lanfranchi, Sally Malay Mining Ltd (Ni)
Nickel Laterite: Cawse, OMG (Ni Co)
15
NiRecent Production, New Mines
Northern Eastern GoldfieldsNickel Sulfide: Cosmos, Jubilee Mines NL (Ni Cu)
Mt Keith and Leinster, BHPB (Ni)Nickel Laterite: Murrin Murrin, Minara Resources Ltd (Ni Co)
Lake Johnston regionNickel Sulfide: Emily Ann, LionOre Mining International (Ni Cu)
Maggie Hays, LionOre Mining (Ni, Cu)
Halls Creek regionNickel Sulfide: Sally Malay, Sally Malay Mining Ltd (Ni, Cu, Co)
Pilbara regionNickel Sulfide: Radio Hill, Fox Resources Ltd (Ni Cu Co)
16
NiProduction 2004
Project Operator Contained Ni (t)
Mineralization style
Leinster Nickel Operations WMC Resources Ltd (BHPB) 44 577 Sulfide Mount Keith Operations WMC Resources Ltd (BHPB) 43 076 Sulfide Long Independence Group NL 8 083 Sulfide Miitel Mincor Resources NL 6 631 Sulfide Wannaway Mincor Resources NL 1 367 Sulfide Redross Mincor Resources NL 438 Sulfide Blair (Area 57 orebody) Australian Mines Ltd 1 125 Sulfide Carnilya+Zone 29 View Resources Ltd 872 Sulfide Cosmos Jubilee Mines NL 12 297 Sulfide Silver Swan MPI Mines Ltd (Lion Ore) 7 652 Sulfide Emily Ann LionOre Mining International Ltd 7 700 Sulfide RAV8 Tectonic Resources NL 2 015 Sulfide Beta Hunt Consolidated Minerals Ltd 3 847 Sulfide Radio Hill Fox Resources Ltd 926 Sulfide Sally Malay Sally Malay Mining Ltd 1 311 Sulfide Murrin Murrin Minara Resources Ltd 28 518 Laterite Cawse (estimated) OMG Cawse Pty Ltd 5 181 Laterite Total 141 917 t 33 699 t
17
Ni Under development or feasibility study
Kambalda regionHelmut South, Sally Malay Mining Ltd
Northern Eastern GoldfieldsProspero near Cosmos, Jubilee Mines NLCliffs and Yakabindi, BHPBHoneymoon Well, LionOre Mining International Ltd
Forrestania regionFlying Fox, Western Areas NL
Halls Creek regionCopernicus, Sally Malay Mining Ltd
Pilbara regionSherlock Bay, Sherlock Bay Nickel Corporation Ltd
19
NiRecent exploration success
Kambalda district - Junior companies exploring and developing nickel sulfide deposits
McLeay ( 0.344 Mt at 6.9% Ni), near Victor South, Independence Group NLBSA prospect, Anomaly 11 prospect, Area 57, near Blair, Australian Mines
Kalgoorlie laterite project advances by Heron Resources / IncoNorthern Eastern Goldfields
Nickel sulfide at Collurabbie, BHPBTapinos and Alec Mairs near Cosmos, Jubilee Mines NLWaterloo-Amorac, LionOre International Ltd
Forrestania – Nickel sulfides at Western Areas T5 depositMusgrave – Potential resource at Babel – 1 Mt contained Ni and 1 Mt CuUse of deep penetrating EM effectively explores depths of 150–500 m
Exploration expenditure $148.7M 2004/05, up 106%
22
Ni Exploration Targets
Sulfide komatiite depositsKambalda district (Ni, Cu)Northeastern Goldfields - Collurabbie (Ni, Cu, PGM)Forrestania district
23
HALLS CREEKOROGEN
MT KEITH - KAMBALDA BELT
FORRESTANIA BELT
PILBARA CRATON
MUSGRAVE COMPLEX
COLLURABBIE
24
Ni Exploration Targets
Sulfide komatiite depositsKambalda district (Ni, Cu)Northeastern Goldfields - Collurabbie (Ni, Cu, PGM)Forrestania district
Sulfide layered mafic and ultramafic intrusionsKimberleyMusgravePilbaraLarge Igneous Provinces
Kimberley (Kalkarinji LIP 510 Ma)Earaheedy Basin (Warakuna LIP 1070 Ma)
25
1070 Ma sills of theWarakurna large igneousprovince in the Glenayle areaof the eastern BangemallSupergroup
1465 Ma and 1070 Madolerite sills of theWestern BangemallSupergroup
Warakuna Large Igneous Province
26
Ni Exploration Targets
Sulfide komatiite depositsKambalda district (Ni, Cu)Northeastern Goldfields - Collurabbie (Ni, Cu, PGM)Forrestania district
Sulfide layered mafic and ultramafic intrusionsKimberleyMusgravePilbaraLarge Igneous Provinces
KimberleyEaraheedy Basin
Laterite depositsMurrin Murrin (Ni, Co)Ravensthorpe (Ni, Co)Kalgoorlie region (Ni) (Goongarrie, Bulong, Highway, Kalpini, etc)Wingellina (Ni, Co)
28
Cu-Pb-ZnConclusions
World demand for Cu-Pb-Zn continues to increase
Increased base metal activities in Western Australia with opening of Whim Creek, Jaguar, and Magellan mines
Work continues on Lennard Shelf and expansions planned in Nifty
Telfer (Au–Cu) reopened, Boddington (Au–Cu) to start production
Cu–Pb–Zn exploration recovering - unrealistically low considering potential
potential for Cu-Pb-Zn discoveries– size of WA, geological diversity
Yilgarn Craton
Pilbara Craton
Albany–Fraser Orogen
King Leopold and Halls Creek Orogens
Earaheedy, Edmund Basins (Caricorn Orogen)
Canning Basin
31
NiConclusions
Western Australia - third largest producer of nickel in the world
Large resource base attracting major players - INCO and BHPB
Great success stories for small explorers
Small miners becoming mid-tier companies
New greenfield provincesBabel in Musgrave ComplexCollurabbie in Gerry Well greenstone belt
Outlook - additional nickel production from nickel laterite - BHPB’sRavensthorpe and INCO/Heron’s Kalgoorlie Project
Enormous large igneous provinces (LIPs) in Kimberley, Capricorn Orogenunder explored
32
Mineral occurrences in the Kimberley
Lamboo Complex- Precious metal
- Base metal
- Speciality metal
- Diamond, semi-precious stone
- Energy mineral
- Industrial mineral
- Iron
- Construction material
Sally Malay
Lennard Shelf
34
Western Australia
Geological diversity and large size of WA provides opportunities in base metals exploration and mining
On-going programs to collect new data
Wide ranging opportunities join fledgling, mid size or mature projectsinitiate new projects